[SGVLUG] Motorola picks Android over M$ Windows CE Dow Jones News Article

[Paul J. Wilkinson, Ph.D.]

Here is the actual article from Dow Jones:


DJ Motorola Deals Microsoft A Blow With Android Endorsement
  
Source: DJ  
Date: 02/04/09  
  
02/04 15:58 =DJ Motorola Deals Microsoft A Blow With Android Endorsement

   By Roger Cheng   Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--Motorola Inc.'s (MOT) choice this week of Google
Inc.'s (GOOG) Android as the wireless platform needed to spice up its bland
handset line dealt a blow to long-time partner Microsoft Corp. (MSFT) and
its more established Windows Mobile operating system.

It's the most public indictment of Microsoft's mobile operating system,
which many consider respectable and stable, but unsexy. Motorola's decision
to commit to Android underscores the increasing threat to Windows Mobile,
which has failed to keep up with the innovations of its rivals.

"You can call the iPhone sexy. You don't come close with Windows Mobile,"
said Roger Entner, who heads up telecom research at Nielsen Co. "At least
Android has the promise of excitement."

Microsoft sold 18 million Windows Mobile licenses in fiscal 2008. The
software runs on 140 phones made by 56 different handset manufacturers. But
Apple Inc. ( AAPL), Google, and Research in Motion Ltd. (RIMM) and more
recently Palm Inc. ( PALM)have introduced products that have grabbed the
attention of consumers but don't use Windows.

Motorola Co-Chief Executive Sanjay Jha is hoping to grab a fair share of
that attention with its own Android phones. In the most public shot at
Microsoft, Jha called Android "more competitive" when compared with the
latest version of Windows Mobile.

When the next iteration comes out, Windows Mobile 7, Motorola would return
to the platform, Jha said. But that likely won't be until 2010.

It's a black eye for Microsoft right before the year's largest wireless
trade show, Mobile World Congress, held in Barcelona in two weeks, where the
company will have a lot to prove. A Microsoft spokesman declined to comment.


   Software Found Lacking

Jha's snub of Microsoft came as a surprise because it was so public, but the
complaints expressed are well-known to industry observers.

In a study by J.D. Power and Associates released at the end of 2008, Windows
Mobile lagged behind rivals Apple and RIM, and was only ahead of Palm's old
operating system, in customer satisfaction.

Windows Mobile has been a standard used by handset makers who didn't want to
develop their own operating system. Major players such as Samsung
Electronics Co. Ltd. (005930.SE) and niche smartphone makers such as HTC
Corp. (2498.TW) rely heavily on the software for their devices.

The operating system is based off of the PC version of Windows, and over the
years have only seen minor upgrades.

"The most recent update to Windows Mobile dotted some i's and crossed some
t's, while the competition is changing the way an operating system acts and
looks like," said Avi Greengart, an analyst at Current Analysis. "The
disturbing thing is Microsoft has had all the assets to compete."

The lack of innovation and clumsy interface have long been complaints
expressed by users and gadget gurus.

Android, meanwhile, presents another option for handset makers. All of
Windows Mobile's major partners are exploring Android phones.

HTC, the largest licensee, was the first to put out a Google phone, the G1.
It was also one of the pioneers in creating a custom user interface to mask
the Windows Mobile platform.




Hard Decision




Motorola had been a stalwart user of Windows Mobile, most notably in its Q
smartphone. The device took design cues from the ultra-successful Razr and
was launched with high expectations that were never really fulfilled.

With Motorola's Mobile Devices unit collapsing, the company has had to slash
jobs and expenses, reducing the amount of resources to put behind its
development. Rather than go with Windows Mobile, it opted to choose the
newer, untested Android platform.

"Motorola is in such deep trouble that they have to focus," Greengart said.
" They simply cannot afford to produce mediocre products on multiple
platforms."

Jha said in an interview that he believes Android's simpler architecture
allows it to be used on a number of different handsets, and not just
high-end smartphones. He stressed, however, that Motorola was not dumping
Windows Mobile.

Robbie Bach, president of Microsoft's Entertainment and Devices division,
previously has said that Windows Mobile can be used in lower-end phones, but
few handset makers have done so.

Industry observers believe that Motorola will need a "home-run" device to
survive. They also agreed that while Android is unproven, it had a better
chance of accomplishing that feat, simply because so many other smartphones
already use Windows Mobile.

"If Sanjay (Jha) bets everything on Windows Mobile and fails, everyone will
say I told you so," Entner said. "But if he bets the farm on Android, it's
more forgiveable. At least he tried something else."




-By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng at dowjones.com